The Nigerian National Petroleum Company Limited (NNPC Ltd.) and its Joint Venture partner in OML 85, First Exploration and Petroleum Development Company Limited (First E&P), have commenced oil production from the asset, also known as Madu Field.
Production from the field which is located in shallow waters offshore Bayelsa State and operated by First E&P is expected to be at an average of 20,000 barrels per day.
The achievement is a testament to the commitment of the President Bola Tinubu administration to optimise production from the nation’s oil and gas assets through the provision of an enabling environment for existing and prospective investors.
The development comes amidst the improvement in crude production for Africa’s most populous economy. According to the Nigerian National Petroleum Company Ltd, crude oil production is around 1.45 million barrels per day.
The country is expected to meet its 1.7 million bpd production benchmark for the 2024 budget of N27.5tn as crude oil theft and vandalism are being tamed by the NNPCL and its security partners
Speaking on the development, the Group Chief Executive Officer of NNPC Ltd., Mr. Mele Kyari, described the commencement of oil production at the Madu Field as a significant milestone that will contribute to the larger goal of meeting the production required to drive revenue growth and boost the nation’s economy.
Kyari, who commended stakeholders for their support, also explained that the addition of 20,000 barrels per day by an indigenous oil player signals the commitment of stakeholders to achieving economic development for Nigeria.
It would be recalled that the Final Investment Decision (FID) on the development of the Madu Field and a sister field, Anyala, was taken by the NNPC Ltd./First E&P JV in 2018.
Production from the Madu Field will be processed at the JV’s Abigail-Joseph Floating Production Storage and Offloading (FPSO) Unit, which has a crude oil storage capacity of up to 800,000 bbls.
OML 85 has four fields namely Madu, Songhai, Ato-North and Ato-South. Significant oil, gas and condensate resources have been confirmed across multiple-stacked reservoirs in the Madu field.